In 1996 the ARU was broke and the taxpayers of Victoria and the sporting patrons of Victoria bailed out the ARU. The State government of Victoria struck a five year deal with the ARU to bring two Bledisloe games, a Mandela cup game and a British lions game to Victoria bringing patrons through the turnstiles like no other state could.
Three similar deals were subsequently done and from 1997 to 2016 the Victorian Major events paid well in excess of twenty million dollars to attract four Bledisloe cups, two British lions, numerous world cup games and a host of other test matches to Melbourne so that over a million patrons could attend test match rugby in Melbourne. At an average ticket price of one hundred dollars, that equates to one hundred million dollars in to the coffers of the ARU.
In total, the Victorian taxpayers and sports patrons added over a hundred and twenty million dollars in revenue to the ARUs war chest.
Further, Vic government built a rugby stadium at AAMI park as part of the failed 2004 bid for Rugby at a further cost of $350 m .
Close to half a billion dollars has been invested in rugby in the state of Victoria.
How can the ARU even contemplate cutting the Melbourne Rebels after Victorian rugby saved Australian Rugby?
The Victorian state government built AAMI Park to cater for the Storm and the multiple A league clubs in Victoria. It was not built in "retaliation" of or "as part of the bid" to being awarded a Super Rugby franchise. This figure of $350 million is misleading as this stadium was being built regardless to cater for existing sports teams.
Not all monies from test ticket sales goes to the ARU. There is costs associated with the venue that needs to be taken into consideration, staffing, rent etc. The Victorian government also benefits from the ancillary revenue of hosting a test such as tourism income from hotels, restaurants etc. Without knowing the exact split, the ARU would only see between 10 - 20% of ticket sales revenue and that may be a bit generous. The Victorian government would make its initial investment back first then the ARU might make a couple million more on top, so the total the ARU makes is the $5 million to host the game, merchandise sales and a bit on change from tickets. I doubt the Victorian government would host such an event if they gave away all of the money earnt using their infrastructure. Heck, the ARU struggles to turn a profit hosting a match at Homebush in Western Sydney where they get 60 000 - 80 000 attending.
I struggle to see how the ARU is half a billion dollars better off by investing in Victoria as your figures are very inaccurate and misleading. Rugby may have generated half a billion dollars of economic activity inside of Victoria but as revealed by multiple ARU financial statements, the ARU is not $500 million better off from any state. If they were, we wouldn't be having the discussion about culling a team.
If anything, your figures actually show the ARU is better off hosting the one off blockbuster test matches in Victoria rather than trying to facilitate a Super Rugby team. Theres more money for the ARU to be had from Victoria hosting a Bledisloe than there is the ARU continally propping up the Rebels and fighting the AFL for weekly exposure that the AFL can easily out spend the ARU on.
My summation most probably wont be popular amongst the Rebel Army. Backlash away.